Joining a venture fund made me a better recruiter
Yes, I realize that being part of a fund and also being a recruiter don't always go together
But hear me out..
What do the two have in common?
✅ They both know that a company needs to hire the right people to grow
The disconnect – what are considered “the right people”
This is what being part of a fund taught me
🔥 A company’s success is tied to how well it manages its financials
🔥 A fund manager makes money when the valuation of an investment grows
🔥 The biggest challenge their PortCo’s have – hiring the right people
Here is how it changed me as a recruiter
👉 Burn rate and valuation:
✅ Every decision I make directly impacts both
👉 Salary matters:
✅ The more expensive the candidate, the greater the burn rate
👉 Filling a gap or levelling up?
✅ Does this person fill a role or do they fill a strategic need
👉 4 years forward or back:
✅ When it comes to key hires, there is a massive impact in getting it right and wrong
👉 Do I think this is the right decision and would I do this in my own business?
✅ If you’re an investor it technically is your business
👉 You will get frustrated, what matters is how you react:
✅ Founders will make bad hiring decisions irrespective of your advice and you know they will negatively impact the valuation. There is no easy way around it, you must have the courage to speak up, you owe a duty of care to be honest, factual and sincere
👉 Recruitment costs, are costs:
✅ Yes you need to be paid, but you also need to help reduce your client's burn rate
👉 Evaluate economies of scale or an RPO model
✅ To bring down the costs
👉 Not all roles need agency support
✅ If it helps them bring costs down by doing it internal, let them, but it also says a lot about a person’s character to be selfless and help guide them on the role, expecting nothing back
👉Some roles 100% need agency support
✅ When the stakes are high, don’t leave them to chance
Thank you o'mentor o'mine Chris Birrell Func Ventures